Loss Aversion in the Laboratory

William G. Morrison () and Robert Oxoby
Additional contact information
William G. Morrison: Wilfrid Laurier University

No 8309, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We report the results of a laboratory experiment testing for the existence of loss aversion in a standard risk aversion protocol (Holt and Laury, 2002). In our experiment, participants earn and retain money for a week before using it in an incentivized risk preference elicitation task. We find loss aversion, distinct from risk aversion, has a significant effect on behavior resulting in participants requiring higher compensation to bear risk.

Keywords: risk aversion; loss aversion; experiments (search for similar items in EconPapers)
JEL-codes: C91 D91 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2014-07
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Loss Aversion in the Laboratory (2014)
Working Paper: Loss Aversion in the Laboratory (1970)
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